- 10:42 PM Are stricter rules for MF advertisements on anvil?
- 10:31 PM NSE to launch new MF service system on Nov 30
- 10:16 PM India indispensable to America's future: Barack Ob...
- 10:00 PM Subir Gokarn’s agenda:Stimulus exit not to hit eco...
- 09:16 PM Worst over for India auto companies: Anand Mahindr...
- 08:52 PM Edelweiss, Tokio Marine ink insurance JV
- 08:42 PM Aviation biz to contribute 5% to rev in 3-5 years:...
- 08:24 PM Inflow of money will not help curb inflation: Bima...
- 07:17 PM MphasiS Q4 cons net profit up 33.9% at Rs 245 cr
- 06:59 PM Immediate supports for rupee at 46.20/46.10: Commt...



Delisting may soon be a whole new game! Market regulator SEBI has proposed guidelines that would alter the pricing mechanism, settlement and a 10 % public shareholding as the trigger for delisting, reports CNBC-TV18.
It's a sign of times to come for companies that want to walk the delisting path. SEBI has found that the book building process for the exit price was not necessarily leading to a genuine price discovery.
The regulator wants to address some of the concerns thrown up in past delisting cases. These are disproportionate powers with the public shareholders holding major chunks, possibility of frivolous bids, freedom to promoters to reject the price and a revision of bids leading to price cartelization.
The regulator has proposed new pricing rules. The price will be fixed at a 25% premium to the floor price, which is the price when the board informs the exchanges of its decision to delist.
Besides that, the SEBI has also suggested a minimum shareholder subscription level where the public shareholding reduces to 10% to 4 % or the promoter share holding rises to 90 to 96%.
The regulator has proposed that the settlement process of exit offers be handled by merchant bankers and registrars - as they are done in the case of open offers.
These are radical changes but as of now they are merely suggestions. SEBI is still waiting to get a public opinion on the proposal and market watchers are still studying the concept paper.
|
|
Business
Business News | Economy | Earnings | BSE NSE Notices
General News
Current Affairs | Politics | World News | Sports | Entertainment
Corporate Strategy
Management | Advertising | Marketing | Legal
Personal Finance
Tax | Insurance | Credit Cards | Loans | Property | Retirement | Investment Help | Financial Planning | Fixed Income
Markets
Local Market | Global Market | Market Cues | Analysis | Expert & FII outlook | Brokerage Recomendation
Stocks
Stocks in News | Expert Advice | ADRs & GDRs | IPO
Mutual Funds
News | Advice | MF Analysis | Fund Managers Views
Lifestyle
Travel | Wellness | Technology | Auto| Books
-
Most Read
-
Most Viewed
- 10 Companies that FIIs love
- 10 companies that MF managers love
- Mitesh Thacker's top 5 picks for trade today

- Ganeshaspeaks: Market prediction for Nov 24
- Will ITC dream run continue beyond FY10?

- Den Networks slips 22% after listing at Rs 195
- Trading in MF units to start in 15 days: SEBI

- Why LyondellBasell is a goldmine for RIL

- Experts see mkts at new highs, advise sectors

- Corrections in '10 to be more aggressive, violent: JPMorgan

- Mahindra may increase car prices due to rising input costs
Source: Business Line
- Renault to continue with M&M for Logan, says Ghosn
Source: Business Line
- Market volatility poses valuation problems: IRDA
Source: Business Line
- Punjab, Haryana buck all-India rice decline trend
Source: Business Line










